Economic Freedom and the Power of Free Markets

Who was awarded the Nobel Prize in economics in Stockholm?

• Johan Norberg

• Milton Friedman

• Adam Smith

• Leonard Reed

Where did Milton Friedman present his ideas in a ten-hour PBS series?

• Hong Kong

• New York City

• Stockholm

• Glasgow

Which country has been ranked as having the most economic freedom for the last sixteen years?

• Sweden

• United States

• Hong Kong

• China

What is one of the main reasons why Hong Kong has been able to provide a rapidly rising standard of life for its people?

• Government intervention in the economy

• High tariffs on trade

• Complete absence of tariffs and restrictions on trade

• Strict regulations on businesses

According to Adam Smith, what can produce an orderly society benefiting everybody?

• Government commands

• Voluntary association and self-interest

• Force and fraud

• Top-down regulations

What is the term used to describe the constant renewal of the economy?

• Creative destruction

• Market competition

• Government intervention

• Economic stagnation

What is one example of creative destruction mentioned in the text?

• The invention of the Smart Phone

• The rise of inequality

• The increase in government programs

• The decline of landline phones

What is one consequence of creative destruction?

• Increased poverty

• Decreased productivity

• Inequality of outcome

• Stagnant economic growth

What has been the result of relatively free markets in the last one-hundred years?

• Decreased wealth and poverty

• Increased government control

• Reduced extreme poverty and increased wealth

• Stagnant economic development

How many hours of work are required to buy a cell phone today compared to twenty-five years ago?

• 456 hours

• 100 hours

• 40 hours

• 4 hours